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Main Factor Putting Pressure on Bitcoin Price Revealed
Over the past week, long-term holders have been transferring large amounts of BTC to the Kraken crypto exchange. This activity continues the outflow trend seen since mid-October and explains Bitcoin’s negative price performance, according to trading experts.
“Right now, long-term Bitcoin holders are driving market consolidation. The recent sell-offs occurred without strong macroeconomic catalysts and amid a relatively stable political environment,” analysts at QCP Capital noted.
Since Bitcoin’s price is consolidating in a narrow range, analysts fear that the bullish cycle may be ending, giving way to a new crypto winter. Large funds and private investors are taking profits, which is reducing volatility.
Experts believe that such periods of consolidation often mark turning points for the broader market. The next few weeks — and how major investors and retail traders react — will be crucial for maintaining confidence in Bitcoin’s long-term potential.
Nevertheless, rising corporate interest continues to support demand for the leading cryptocurrency. Even if the correction deepens, the market is expected to remain in an accumulation phase, laying the groundwork for the next growth cycle, according to QCP Capital.
Earlier, Glassnode analysts reported that Bitcoin failed to hold above $113,000, which means the price could drop to $88,000 in the short term.
